TORONTO, Nov. 1, 2012 /CNW/ - Mondelēz Canada today announced that it intends to close its Lakeshore Bakery in the West End of Toronto in the third quarter of 2013.
The 625,000 square-foot biscuit manufacturing facility, located on Lakeshore Boulevard, has produced a variety of cookies and crackers since 1948.
"This is a difficult decision, given the role this facility has played within our organization and in the community for 64 years. However, the plant faces some unique challenges resulting from the changing neighborhood surrounding the facility," said Alvaro Cuba, VP Operations for Mondelēz Canada.
"While this was an appropriate location for a large bakery when it was first built, the significant residential development surrounding it has led to operating constraints that will become increasingly difficult with the further residential expansion that is underway. With the facility's aging infrastructure, and underutilized manufacturing capacity, further investment is not a viable option. Therefore, we have determined it is best to close the facility because it no longer supports our strategy of making the most efficient use of our manufacturing assets," he said.
This decision will affect about 550 employees who were informed of the company's plans earlier today.
"Our focus right now is on our employees. We're making this announcement almost a year in advance of the planned closure to help provide a smooth transition. We're committed to treating our people fairly and working with them through this difficult time," Cuba said.
As a result of this closure, a portion of the Lakeshore Bakery's production will be moved to Mondelēz Canada´s bakeries in Montreal and East York. The remainder will be split between other current North American biscuit manufacturing facilities and co-manufacturers.
ABOUT MONDELĒZ CANADA
Mondelez Canada Inc. is a snacks leader in Canada, manufacturing and marketing some of the country's best-loved brands. It maintains a strong presence across the country, including manufacturing, distribution and sales operations as well as a head office location. Mondelēz Canada is the Canadian business operation of Mondelēz International, Inc. (NASDAQ: MDLZ), a world leader in chocolate, biscuits, gum, candy, coffee and powdered beverages. The company comprises the global snacking and food brands of the former Kraft Foods Inc. following the spin-off of its North American grocery operations in October 2012. Mondelēz International's portfolio includes several billion-dollar brands such as Cadbury and Milka chocolate, Jacobs coffee, LU, Nabisco and Oreo biscuits, Tang powdered beverages and Trident gum. Mondelēz International has annual revenue of approximately $36 billion and operations in more than 80 countries. Visit www.mondelezinternational.com.
SOURCE: Mondelez Canada
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